Discussion:
February 2018 Review (See Attachment)
Revenue Variances (+/- 10% of 16% Target)
- This early in the year, one or two large receipts or the timing of when revenue is received can tend to skew variances. The first half property tax settlement will not occur until June which accounts for the variance in the taxes and special assessments. Miscellaneous revenue is the only other revenue with a significant variance. 2018 interest revenue journal entries will be posted to miscellaneous revenue once the 2017 books are officially closed, which will eliminate this variance. We hold off allocating 2018 interest until the 2017 ending cash balances are finalized since interest is allocated based off of each funds' cash balance.
Expenditure Variances (+/- 10% of 16% Target)
- The significant departmental variances are the same as mentioned last month.
- The Mayor and Council division incurs a number of one-time costs at the front of the budget cycle and is anticipated to fall back within the variance parameters as the year progresses.
- The Facilities division is exceeding the target range, but it should be noted that an operational change took place on January 1. Rather than each building such as city hall, public works, fire stations and the police department having a separate facilities budget for operational maintenance and repair, the facilities division is now responsible for these activities. This change will allow the facilities maintenance supervisor more flexibility in directing where needed maintenance or repair dollars are needed. We are planning to bring a budget amendment forward at the next council meeting that will reallocate funds from these other divisions to the Facilities division. This budget amendment will be budget neutral.
Community Center/Sand Venture & Ice Arena Year-over-Year Comparison (See Attachment)
January 2018
Similar to the analysis of the City's General fund, reviewing revenue and expenditures early in the year can be easily distorted depending upon what type of transactions did or did not occur. You will notice the revenue for ice arena is
about $72,000 less than this same time last year. This is due to the second half of the high school ice rental of $62,500 not being billed until the first week of March this year compared to February last year.
Ice arena expenditures are similar to this same time last year and are tracking with the 2018 budget.
Community Center/Sand Venture revenues are trending at about 18% of the 2018 budget, which is right in-line with our target at this point in the year. 2017 revenues for the community center/sand venture revenues are negative as of February 2017. This is due to the change in accounting principal that was implemented last year which now recognizes annual memberships as they are earned compared to when they are purchased.
Community center expenditures are higher than this time last year due to the facility not being fully functional until mid-summer. However, through February 2018 community center/sand venture expenditures account for about 11% percent of the budget. Individual line item expenditures will continue to be monitored as the year progresses.
Deferred membership revenue as of February 28, 2018 is just above $250,000 compared to $129,275 a year ago. This is direct result of strong annual membership sales throughout 2017.